Padang, (Antaranews Sumbar) - Bank Indonesia representative of West Sumatra recorded price developments in the province until mid-Ramadhan 1439 Hijriah is relatively under control with inflation rate at 0.36 percent in May 2018.
"Even in May, West Sumatra's inflation is rising, inflation pressure in Ramadhan is not much different compared to Ramadhan 2017 which reached 0.32 percent," Head of Bank Indonesia representative of West Sumatra Endy Dwi Tjahjono stated in here on Tuesday.
According to him, the inflation rate in Ramadhan 2018 is also below the average of Ramadhan inflation three years earlier in the period of 2014-2016 which reached 0.76 percent.
He conveyed the monthly inflation rate in West Sumatra in May 2018 mainly contributed by rising volatile food group prices.
"Commodities which are contributing to inflation such as red chili, onion and chicken meat," he pointed out.
He said inflation in the commodity occurs due to limited supply in the market.
Besides, there is a decline of onion production in Alahan Panjang, Solok District because it is still in the planting period and it is causing the stock of commodities is disrupted.
Meanwhile, the increase in the price of chicken meat occurs due to the lack of supply in the market.
Observing the latest developments, Endy said the inflation of West Sumatra needs to be anticipated because of the potential for higher inflationary pressure in June 2018.
The main sources of inflationary pressure came from government-regulated goods category, in particular the continued impact of the increase in air freight rates in line with ongoing homecoming and returns, he explained.
In addition, demand for educational commodities, particularly enrollment and schooling are expected to increase with the entry of new school year.
Then the increasing public demand for strategic food commodities ahead of Eid al-Fitr 2018 will impact on rising food group prices churned, he remarked. (cha)
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